SEBI rolls out Consultation Paper dealing with Pre-filing of Offer Document in case of Initial Public Offerings; invites public comments by 06-06-2022
The Securities and Exchange Board of India has, though a Notification, rolled out a Consultation Paper on Pre-filing of Offer Document in case of Initial Public Offerings to address the following concerns :
- Disclosure of sensitive information in the Draft Red Herring Prospectus by issuer companies, which may be beneficial to its competitors, without the certainty that the initial public issuance would be executed
- Timing of the public issue vis a vis market conditions. Any delay due to such factors results in concerns regarding the “recency” of the feedback obtained from potential institutional investors during the roadshows, thus impacting the pricing as well estimating the issue size
- Lack of updated information (which has incorporated SEBI observations and latest financials) for consumption of investors in public domain for a significantly longer period of time as Red Herring Prospectus, are mostly available for only 2-5 days before the issue opens.
SEBI has invited public comments / views on the matter in the Consultation Paper sent by 6th June, 2022, by email to consultationcfd@sebi.gov.in with subject as “Comments on consultation paper on Pre-filing of offer document in case of Initial Public Offerings (IPOs)” as per the format given below:
| Name of entity / person :
Contact Number & Email Address : |
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| Sr. No. | Reference Para of the consultation paper | Suggestion/ Comments | Rationale |
For a detailed read of, please refer to the document attached or the hyperlinked source given below.
